Community and Council lose sleep over proposed mining camp.

The proposed Gulgong mining camp development was initially refused by a Joint Regional Planning Panel.

A recent court decision granting development approval for a 400 bed mining camp, in central west New South Wales, is provoking outrage amongst the Gulgong community and its Council.

The proposed $ 26 million development, by the MAC Services group, was initially refused by a Joint Regional Planning Panel in 2012.

That decision was overturned on appeal in the Land and Environment Court last week.

With approval for the project now in place, the MAC says it will push ahead, despite widespread opposition, claims of broken promises and questions over the economic viability of the project.

"The MAC Group proponents sat in the Mayor's office and looked the Mayor and myself in the eye", says the General Manager of Mid Western Regional Council, Warwick Bennett.

"They said very clearly, if there was any time during the process of considering this application, that the community of Gulgong made it clear they did not want this development to occur in their town, then they would leave town, without proceeding with this application."

General Manager of Development for the MAC Services group Geoff Dearden, says the company took it to the community at large.

"We've run an open and transparent consultation process with the whole community, the wider community of Gulgong and we've been very pleased with the feedback."

Local residents Paul and Sheryl Kreuzen dispute this and point to the 300 objections to the development application.

The Land and Environment Court ruled that the MAC must offer acquisition rights to the couple for their property, which would be surrounded by the camp if it's ever built.

But they don't want to leave, largely because of their exotic bird breeding business on the premises, which they say would be adversely impacted and because it's their home.

"It's 20 years of work we're looking at, 25 years now, and it's going to be extremely hard for us at our age to actually relocate", he says.

Mr Kreuzen tried to present evidence in court his business would be disrupted by the development, but says it was taken as a submission because he was unable to talk as an `expert'.

"There is absolutely no degree you can have as a breeder....but having 25 years experience in the game.... that doesn't stand up in court", he says.

The MAC's Mr Dearden points this out, saying "[w]ell the court found there was absolutely no evidence that we'd negatively impact our neighbour, or his business, but as a safeguard we're required to acquire his property if he wants us to."

One issue that could decide the future of the project is whether it stacks up economically.

"We've been speaking with the General Managers of the major mines and they said they would not be using any MAC group development", says Mr Bennett.

When the MAC initially submitted the Development Application for the project in 2011, it was at the peak of the regions mining boom and the company had forecast large increases in labour supply.

Now the boom is over, Mr Bennett says the need simply is not there.

"We're just preparing for the future", Mr Dearden states.

"It's a planning process, and when the population pressures come, which they will do whether the MAC comes or not, it's just a management tool that the community can use to actually deal with that demand."

Council says it's been planning for that future for years.

"We have a lot of housing development in this region...there's plenty of housing", Mr Bennett argues.

"We have been more than able to cope with the growth of mining in this region."

The Mid Western Regional Council is currently assessing its options for an appeal of the Land and Environment Court ruling.